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90_SB0539 SEE INDEX Amends the Metropolitan Water Reclamation District Article of the Pension Code. Extends the deadline for early retirement without discount; changes the eligibility requirements and method of calculating the required contributions. Extends the deadline for participating in the optional plan of additional contributions; limits the maximum optional benefit that may be purchased under the plan during its final 5 years and prohibits participation by persons who first enter service after June 30, 1997. For new employees only, raises the minimum retirement age from 50 to 55 and eliminates duty and ordinary disability benefits for the first 3 days of compensable disability if the disability does not extend for at least 11 additional days. Eliminates the duty disability benefit for children. Grants automatic annual increases to certain persons who retired before July 1, 1985. Imposes additional eligibility requirements for disability and survivor benefits. Applies an age discount to the minimum surviving spouse benefit. Changes the definitions of salary and final average salary. Changes the salary used in the calculation of alternative benefits for district commissioners. Changes the conditions for payment of contributions for leaves of absence. Provides that future appointees to the Civil Service Board of the District shall not be deemed to be employees of the District for purposes of qualifying to participate in the Fund. Removes certain age restrictions from the provisions relating to the period during which disability benefits may be received. Makes other changes in the manner of administering the Fund. Also amends the General Provisions Article to authorize the Metropolitan Water Reclamation District pension fund to invest up to 50% (rather than 40%) of its assets in stocks and convertible debt instruments. Declares that the bill accommodates a request from the affected unit of local government. Effective immediately. LRB9002859EGfg LRB9002859EGfg 1 AN ACT to amend the Illinois Pension Code in relation to 2 the Metropolitan Water Reclamation District. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Sections 1-113, 13-204, 13-207, 13-208, 13-301, 7 13-302, 13-304, 13-305, 13-306, 13-308, 13-309, 13-310, 8 13-314, 13-401, and 13-402 as follows: 9 (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113) 10 Sec. 1-113. Investment authority. The investment 11 authority of a board of trustees of a retirement system or 12 pension fund established under this Code shall, if so 13 provided in the Article establishing such retirement system 14 or pension fund, embrace the following investments: 15 (1) Bonds, notes and other direct obligations of the 16 United States Government; bonds, notes and other obligations 17 of any United States Government agency or instrumentality, 18 whether or not guaranteed; and obligations the principal and 19 interest of which are guaranteed unconditionally by the 20 United States Government or by an agency or instrumentality 21 thereof. 22 (2) Obligations of the Inter-American Development Bank, 23 the International Bank for Reconstruction and Development, 24 the African Development Bank, the International Finance 25 Corporation, and the Asian Development Bank. 26 (3) Obligations of any state, or of any political 27 subdivision in Illinois, or of any county or city in any 28 other state having a population as shown by the last federal 29 census of not less than 30,000 inhabitants provided that such 30 political subdivision is not permitted by law to become 31 indebted in excess of 10% of the assessed valuation of -2- LRB9002859EGfg 1 property therein and has not defaulted for a period longer 2 than 30 days in the payment of interest and principal on any 3 of its general obligations or indebtedness during a period of 4 10 calendar years immediately preceding such investment. 5 (4) Nonconvertible bonds, debentures, notes and other 6 corporate obligations of any corporation created or existing 7 under the laws of the United States or any state, district or 8 territory thereof, provided there has been no default on the 9 obligations of the corporation or its predecessor(s) during 10 the 5 calendar years immediately preceding the purchase. 11 (5) Obligations guaranteed by the Government of Canada, 12 or by any Province of Canada, or by any Canadian city with a 13 population of not less than 150,000 inhabitants, provided (a) 14 they are payable in United States currency and are exempt 15 from any Canadian withholding tax; (b) the investment in any 16 one issue of bonds shall not exceed 10% of the amount 17 outstanding; and (c) the total investments at book value in 18 Canadian securities shall be limited to 5% of the total 19 investment account of the board at book value. 20 (5.1) Direct obligations of the State of Israel for the 21 payment of money, or obligations for the payment of money 22 which are guaranteed as to the payment of principal and 23 interest by the State of Israel, or common or preferred stock 24 or notes issued by a bank owned or controlled in whole or in 25 part by the State of Israel, on the following conditions: 26 (a) The total investments in such obligations shall 27 not exceed 5% of the book value of the aggregate 28 investments owned by the board; 29 (b) The State of Israel shall not be in default in 30 the payment of principal or interest on any of its direct 31 general obligations on the date of such investment; 32 (c) The bonds, stock or notes, and interest thereon 33 shall be payable in currency of the United States; 34 (d) The bonds shall (1) contain an option for the -3- LRB9002859EGfg 1 redemption thereof after 90 days from date of purchase or 2 (2) either become due 5 years from the date of their 3 purchase or be subject to redemption 120 days after the 4 date of notice for redemption; 5 (e) The investment in these obligations has been 6 approved in writing by investment counsel employed by the 7 board, which counsel shall be a national or state bank or 8 trust company authorized to do a trust business in the 9 State of Illinois, or an investment advisor qualified 10 under the Federal Investment Advisors Act of 1940 and 11 registered under the Illinois Securities Act of 1953; 12 (f) The fund or system making the investment shall 13 have at least $5,000,000 of net present assets. 14 (6) Notes secured by mortgages under Sections 203, 207, 15 220 and 221 of the National Housing Act which are insured by 16 the Federal Housing Commissioner, or his successor assigns, 17 or debentures issued by such Commissioner, which are 18 guaranteed as to principal and interest by the Federal 19 Housing Administration, or agency of the United States 20 Government, provided the aggregate investment shall not 21 exceed 20% of the total investment account of the board at 22 book value, and provided further that the investment in such 23 notes under Sections 220 and 221 shall in no event exceed 24 one-half of the maximum investment in notes under this 25 paragraph. 26 (7) Loans to veterans guaranteed in whole or part by the 27 United States Government pursuant to Title III of the Act of 28 Congress known as the "Servicemen's Readjustment Act of 29 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or 30 supplemented from time to time, provided such guaranteed 31 loans are liens upon real estate. 32 (8) Common and preferred stocks and convertible debt 33 securities authorized for investment of trust funds under the 34 laws of the State of Illinois, provided: -4- LRB9002859EGfg 1 (a) the common stocks, except as provided in 2 subparagraph (h), are listed on a national securities 3 exchange as defined in the Federal Securities Exchange 4 Act, or quoted in the National Association of Securities 5 Dealers Automated Quotation System (NASDAQ); 6 (b) the securities are of a corporation created or 7 existing under the laws of the United States or any 8 state, district or territory thereof; 9 (c) the corporation is not in arrears on payment of 10 dividends on its preferred stock; 11 (d) the total book value of all stocks and 12 convertible debt owned by any pension fund or retirement 13 system shall not exceed 40% of the aggregate book value 14 of all investments of such pension fund or retirement 15 system, except for a pension fund or retirementthat16 system governed by Article 13 or 17, where the total of 17 all stocks and convertible debt shall not exceed 50% of 18 the aggregate book value of all fund investments; 19 (e) the book value of stock and convertible debt 20 investments in any one corporation shall not exceed 5% of 21 the total investment account at book value in which such 22 securities are held, determined as of the date of the 23 investment, and the investments in the stock of any one 24 corporation shall not exceed 5% of the total outstanding 25 stock of such corporation, and the investments in the 26 convertible debt of any one corporation shall not exceed 27 5% of the total amount of such debt that may be 28 outstanding; 29 (f) the straight preferred stocks or convertible 30 preferred stocks and convertible debt securities are 31 issued or guaranteed by a corporation whose common stock 32 qualifies for investment by the board; and 33 (g) that any common stocks not listed or quoted as 34 provided in subdivision 8(a) above be limited to the -5- LRB9002859EGfg 1 following types of institutions: (a) any bank which is a 2 member of the Federal Deposit Insurance Corporation 3 having capital funds represented by capital stock, 4 surplus and undivided profits of at least $20,000,000; 5 (b) any life insurance company having capital funds 6 represented by capital stock, special surplus funds and 7 unassigned surplus totalling at least $50,000,000; and 8 (c) any fire or casualty insurance company, or a 9 combination thereof, having capital funds represented by 10 capital stock, net surplus and voluntary reserves of at 11 least $50,000,000. 12 (9) Withdrawable accounts of State chartered and federal 13 chartered savings and loan associations insured by the 14 Federal Savings and Loan Insurance Corporation; deposits or 15 certificates of deposit in State and national banks insured 16 by the Federal Deposit Insurance Corporation; and share 17 accounts or share certificate accounts in a State or federal 18 credit union, the accounts of which are insured as required 19 by The Illinois Credit Union Act or the Federal Credit Union 20 Act, as applicable. 21 No bank or savings and loan association shall receive 22 investment funds as permitted by this subsection (9), unless 23 it has complied with the requirements established pursuant to 24 Section 6 of the Public Funds Investment Act. 25 (10) Trading, purchase or sale of listed options on 26 underlying securities owned by the board. 27 (11) Contracts and agreements supplemental thereto 28 providing for investments in the general account of a life 29 insurance company authorized to do business in Illinois. 30 (12) Conventional mortgage pass-through securities which 31 are evidenced by interests in Illinois owner-occupied 32 residential mortgages, having not less than an "A" rating 33 from at least one national securities rating service. Such 34 mortgages may have loan-to-value ratios up to 95%, provided -6- LRB9002859EGfg 1 that any amount over 80% is insured by private mortgage 2 insurance. The pool of such mortgages shall be insured by 3 mortgage guaranty or equivalent insurance, in accordance with 4 industry standards. 5 (13) Pooled or commingled funds managed by a national or 6 State bank which is authorized to do a trust business in the 7 State of Illinois, shares of registered investment companies 8 as defined in the federal Investment Company Act of 1940 9 which are registered under that Act, and separate accounts of 10 a life insurance company authorized to do business in 11 Illinois, where such pooled or commingled funds, shares, or 12 separate accounts are comprised of common or preferred 13 stocks, bonds, or money market instruments. 14 (14) Pooled or commingled funds managed by a national or 15 state bank which is authorized to do a trust business in the 16 State of Illinois, separate accounts managed by a life 17 insurance company authorized to do business in Illinois, and 18 commingled group trusts managed by an investment adviser 19 registered under the federal Investment Advisors Act of 1940 20 (15 U.S.C. 80b-1 et seq.) and under the Illinois Securities 21 Law of 1953, where such pooled or commingled funds, separate 22 accounts or commingled group trusts are comprised of real 23 estate or loans upon real estate secured by first or second 24 mortgages. The total investment in such pooled or commingled 25 funds, commingled group trusts and separate accounts shall 26 not exceed 10% of the aggregate book value of all investments 27 owned by the fund. 28 (15) Investment companies which (a) are registered as 29 such under the Investment Company Act of 1940, (b) are 30 diversified, open-end management investment companies and (c) 31 invest only in money market instruments. 32 (16) Up to 10% of the assets of the fund may be invested 33 in investments not included in paragraphs (1) through (15) of 34 this Section, provided that such investments comply with the -7- LRB9002859EGfg 1 requirements and restrictions set forth in Sections 1-109, 2 1-109.1, 1-109.2, 1-110 and 1-111 of this Code. 3 The board shall have the authority to enter into such 4 agreements and to execute such documents as it determines to 5 be necessary to complete any investment transaction. 6 Any limitations herein set forth shall be applicable only 7 at the time of purchase and shall not require the liquidation 8 of any investment at any time. 9 All investments shall be clearly held and accounted for 10 to indicate ownership by such board. Such board may direct 11 the registration of securities in its own name or in the name 12 of a nominee created for the express purpose of registration 13 of securities by a national or state bank or trust company 14 authorized to conduct a trust business in the State of 15 Illinois. 16 Investments shall be carried at cost or at a book value 17 in accordance with accounting procedures approved by such 18 board. No adjustments shall be made in investment carrying 19 values for ordinary current market price fluctuations; but 20 reserves may be provided to account for possible losses or 21 unrealized gains as determined by such board. 22 The book value of investments held by any pension fund or 23 retirement system in one or more commingled investment 24 accounts shall be the cost of its units of participation in 25 such commingled account or accounts as recorded on the books 26 of such board. 27 (Source: P.A. 86-272; 87-575; 87-794; 87-895.) 28 (40 ILCS 5/13-204) (from Ch. 108 1/2, par. 13-204) 29 Sec. 13-204. "Employee": (a) Any employee of the Water 30 Reclamation District appointed to the classified civil 31 service under the Metropolitan Water Reclamation District Act 32 or any employee exempt from civil service under that Act, 33 including any person absent from such position due to -8- LRB9002859EGfg 1 assignment to any other position of employment for the 2 District; (b) any temporary employee of the District; (c) all 3 appointed officers or acting officers of the District; (d) 4 any employee of the Retirement Board; and (e) any member of 5 the Board of Commissioners of the District who elects to 6 participate in the Fund within 90 days after becoming a 7 member. 8 No person shall be an employee hereunder whose duties 9 will not ordinarily permit 120 days of service during one 10 calendar year. 11 A member of the Civil Service Board of the District who 12 is first appointed to that office on or after the effective 13 date of this amendatory Act of 1997 is not, by virtue of 14 holding that office, an "employee" for the purposes of this 15 Article. 16 (Source: P.A. 87-794.) 17 (40 ILCS 5/13-207) (from Ch. 108 1/2, par. 13-207) 18 Sec. 13-207. "Salary": The salary paid to an employee 19 for service to the District or to the Board, including salary 20 paid for vacation and sick leave and any amounts deferred 21 under a deferred compensation plan established under this 22 Code, but excluding (1) payment for unused vacation or sick 23 leave, (2) overtime pay, (3) termination pay, and (4)(3)any 24 compensation in the form of benefits other than the salary. 25 (Source: P.A. 87-794.) 26 (40 ILCS 5/13-208) (from Ch. 108 1/2, par. 13-208) 27 Sec. 13-208. "Average final salary": The highest 28 average annual salary as calculated by accumulating the 29 salary for the highestany52 consecutive pay periods within 30 the last 10 years of service immediately preceding the date 31 of retirement and dividing by 2. 32 (Source: P.A. 87-794.) -9- LRB9002859EGfg 1 (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301) 2 Sec. 13-301. Retirement annuity; eligibility. Any 3 employee who withdraws from service and meets the age and 4 service requirements and other conditions set forth in 5 subsections (a), (b), (c) or (d) hereof is entitled to 6 receive a retirement annuity. 7 (a) Withdrawal on or after age 60. Any employee, upon 8 withdrawal from service on or after attainment of age 60 and 9 having at least 5 years of service, is entitled to a 10 retirement annuity. 11 (b) Withdrawal on or after attainment of minimum 12 retirement age50and prior to age 60. Any employee, upon 13 withdrawal from service on or after attainment of age 55 (age 14 50 if the employee first entered service before the effective 15 date of this amendatory Act of 1997) but prior to age 60 and 16 having at least 10 years of service, is entitled to a 17 retirement annuity as of the date of withdrawal or, at the 18 option of the employee, at any time thereafter. Any employee 19 who withdraws on or after attainment of age 55 (age 50 if the 20 employee first entered service before the effective date of 21 this amendatory Act of 1997) and prior to age 60 having at 22 least 5 years but less than 10 years of service is entitled 23 to a retirement annuity upon attainment of age 62, subject to 24 the other requirements of this Article. 25 (c) Withdrawal prior to minimum retirement age50. Any 26 employee, upon withdrawal from service prior to age 55 (age 27 50 if the employee first entered service before the effective 28 date of this amendatory Act of 1997) and having at least 10 29 years of service, shall become entitled to a retirement 30 annuity upon attainment of age 55 (age 50 if the employee 31 first entered service before the effective date of this 32 amendatory Act of 1997) or, at the option of the employee, at 33 any time thereafter, subject to the other requirements of 34 this Article. -10- LRB9002859EGfg 1 (d) Withdrawal while disabled. Any employee having at 2 least 5 years of service who has received ordinary disability 3 benefits on or after January 1, 1986 for the maximum period 4 of time hereinafter prescribed, and who continues to be 5 disabled and withdraws from service, shall be entitled to a 6 retirement annuity. The age and service conditions as to 7 eligibility for such annuity shall be waived as to the 8 employee, but the early retirement discount under Section 9 13-302(b) shall apply. If the employee is under age 55 on 10 the date of withdrawal, the retirement annuity shall be 11 computed by assuming that the employee is then age 55 and 12 then reduced to its actuarial equivalent at his attained age 13 on that date according to applicable mortality tables and 14 interest rates. The retirement annuity shall not be payable 15 for any period prior to the employee's attainment of age 55 16 during which the employee is able to return to gainful 17 employment. Upon the employee's death while in receipt of a 18 retirement annuity, a surviving spouse or minor children 19 shall be entitled to receive a surviving spouse's annuity or 20 child's annuity subject to the conditions hereinafter 21 prescribed in Sections 13-305 through 13-308. 22 (Source: P.A. 87-794.) 23 (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302) 24 Sec. 13-302. Computation of retirement annuity. 25 (a) Computation of annuity. An employee who withdraws 26 from service on or after July 1, 1989 and who has met the age 27 and service requirements and other conditions for eligibility 28 set forth in Section 13-301 of this Article is entitled to 29 receive a retirement annuity for life equal to 2.2% of 30 average final salary for each of the first 20 years of 31 service, and 2.4% of average final salary for each year of 32 service in excess of 20. The retirement annuity shall not 33 exceed 80% of average final salary. -11- LRB9002859EGfg 1 (b) Early retirement discount. If an employee retires 2 prior to attainment of age 60 with less than 30 years of 3 service, the annuity computed above shall be reduced by 1/2 4 of 1% for each full month between the date the annuity begins 5 and attainment of age 60, or each full month by which the 6 employee's service is less than 30 years, whichever is less. 7 However, where the employee first enters service after the 8 effective date of this amendatory Act of 1997 and does not 9 have at least 10 years of service exclusive of credit under 10 Article 20, the annuity computed above shall be reduced by 11 1/2 of 1% for each full month between the date the annuity 12 begins and attainment of age 60. 13 (c) Early retirement without discount. An employee who 14 has attained age 50 and retires after December 31, 1987 and 15 before June 30, 1997, and who retires within 6 months of the 16 last day for which retirement contributions were required, 17 may elect at the time of application to make a one-time 18 employee contribution to the Fund and thereby avoid the early 19 retirement reduction specified in subsection (b). The 20 exercise of the election shall also obligate the employer to 21 make a one-time nonrefundable contribution to the Fund. 22 The one-time employee and employer contributions shall be 23 a percentage of the retiring employee's last full-time annual 24 salary, calculated as the total amount paid during the last 25 260 work days immediately prior to the date of withdrawal, or 26 if not full-time then the full time equivalent, and based on 27 the employee's age and service at retirement. The employee 28 contribution rate shall be 7% multiplied by the lesser of the 29 following 2 numbers: (1) the number of years, or portion 30 thereof, that the employee is less than age 60; or (2) the 31 number of years, or portion thereof, that the employee's 32 service is less than 30 years. The employer contribution 33 shall be at the rate of 20% for each year, or portion 34 thereof, that the participant is less than age 60. -12- LRB9002859EGfg 1 Upon receipt of the application, the Board shall 2 determine the corresponding employee and employer 3 contributions. The annuity shall not be payable under this 4 subsection until both the required contributions have been 5 received by the Fund. However, the date the contributions 6 are received shall not be considered in determining the 7 effective date of retirement. 8 The number of employees who may retire under this Section 9 in any year may be limited at the option of the District to a 10 specified percentage of those eligible, not lower than 30%, 11 with the right to participate to be allocated among those 12 applying on the basis of seniority in the service of the 13 employer. 14 An employee who has terminated employment and 15 subsequently re-enters service shall not be entitled to early 16 retirement without discount under this subsection unless the 17 employee continues in service for at least 4 years after 18 re-entry. 19 (c-1) Early retirement without discount; retirement 20 after June 29, 1997. An employee who (i) has attained age 55 21 (age 50 if the employee first entered service before the 22 effective date of this amendatory Act of 1997), (ii) has at 23 least 10 years of service exclusive of credit under Article 24 20, (iii) retires after June 29, 1997 and before January 1, 25 2003, and (iv) retires within 6 months of the last day for 26 which retirement contributions were required, may elect at 27 the time of application to make a one-time employee 28 contribution to the Fund and thereby avoid the early 29 retirement reduction specified in subsection (b). The 30 exercise of the election shall also obligate the employer to 31 make a one-time nonrefundable contribution to the Fund. 32 The one-time employee and employer contributions shall be 33 a percentage of the retiring employee's highest full-time 34 annual salary, calculated as the total amount of salary -13- LRB9002859EGfg 1 included in the highest 26 consecutive pay periods as used in 2 the average final salary calculation, and based on the 3 employee's age and service at retirement. The employee rate 4 shall be 7% multiplied by the lesser of the following 2 5 numbers: (1) the number of years, or portion thereof, that 6 the employee is less than age 60; or (2) the number of years, 7 or portion thereof, that the employee's service is less than 8 30 years. The employer contribution shall be at the rate of 9 20% for each year, or portion thereof, that the participant 10 is less than age 60. 11 Upon receipt of the application, the Board shall 12 determine the corresponding employee and employer 13 contributions. The annuity shall not be payable under this 14 subsection until both the required contributions have been 15 received by the Fund. However, the date the contributions 16 are received shall not be considered in determining the 17 effective date of retirement. 18 The number of employees who may retire under this Section 19 in any year may be limited at the option of the District to a 20 specified percentage of those eligible, not lower than 30%, 21 with the right to participate to be allocated among those 22 applying on the basis of seniority in the service of the 23 employer. 24 An employee who has terminated employment and 25 subsequently re-enters service shall not be entitled to early 26 retirement without discount under this subsection unless the 27 employee continues in service for at least 4 years after 28 re-entry. 29 (d) Annual increase. Except for employees retiring and 30 receiving a term annuity, an employee who retires on or after 31 July 1, 1985 shall, upon the first payment date following the 32 first anniversary of the date of retirement, have the monthly 33 annuity increased by 3% of the amount of the monthly annuity 34 fixed at the date of retirement. The monthly annuity shall -14- LRB9002859EGfg 1 be increased by an additional 3% on the same date each year 2 thereafter. Beginning January 1, 1993, all annual increases 3 payable under this subsection (or any predecessor provision, 4 regardless of the date of retirement) shall be calculated at 5 the rate of 3% of the monthly annuity payable at the time of 6 the increase, including any increases previously granted 7 under this Articlesubsection. 8 Any employee who (i) retired before July 1, 1985 with at 9 least 10 years of creditable service, (ii) is receiving a 10 retirement annuity under this Article, other than a term 11 annuity, and (iii) has not received any annual increase under 12 this subsection, shall begin receiving the annual increases 13 provided under this subsection (d) beginning on the the next 14 annuity payment date following the effective date of this 15 amendatory Act of 1997. 16 (e) Minimum retirement annuity. Beginning January 1, 17 1993, the minimum monthly retirement annuity shall be $500 18 for any annuitant having at least 10 years of service under 19 this Article, other than a term annuitant or an annuitant who 20 began receiving the annuity before attaining age 60. Any 21 such annuitant who is receiving a monthly annuity of less 22 than $500 shall have the annuity increased to $500 on that 23 date. 24 Beginning January 1, 1993, the minimum monthly retirement 25 annuity shall be $250 for any annuitant (other than a term or 26 reciprocal annuitant or an annuitant under subsection (d) of 27 Section 13-301) having less than 10 years of service under 28 this Article, and for any annuitant (other than a term 29 annuitant) having at least 10 years of service under this 30 Article who began receiving the annuity before attaining age 31 60. Any such annuitant who is receiving a monthly annuity of 32 less than $250 shall have the annuity increased to $250 on 33 that date. 34 (Source: P.A. 87-794; 87-1265.) -15- LRB9002859EGfg 1 (40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304) 2 Sec. 13-304. Optional plan of additional benefits and 3 contributions. 4 (a) While this plan is in effect, an eligible employee 5 may establish additional optional credit for additional 6 benefits by electing in writing at any time to make 7 additional optional contributions. The employee may 8 discontinue making the additional optional contributions at 9 any time by notifying the Fund in writing. 10 Employees first entering service after June 30, 1997 are 11 not eligible to participate in the plan established under 12 this Section. 13 (b) Additional optional contributions for the additional 14 optional benefits shall be as follows: 15 (1) For service after the option is elected, an 16 additional contribution of 3% of salary shall be 17 contributed to the fund on the same basis and under the 18 same conditions as contributions required under Section 19 13-502. 20 (2) For serviceservicesbefore the option is 21 elected, an additional contribution of 3% of the salary 22 for the applicable period of service, plus interest at 23 the annual rate as shall from time to time be determined 24 by the Board, compounded annually from the date of 25 service to the date of payment. All payments for past 26 service must be paid in full before credit is given. A 27 person who has withdrawn from service may pay the 28 additional contribution for past service at any time 29 within 30 days after withdrawal from service, so long as 30 payment is made in full before the retirement annuity 31 commences. No additional optional contributions may be 32 made for any period of service for which credit has been 33 previously forfeited by acceptance of a refund, unless 34 the refund is repaid in full with interest at the rate -16- LRB9002859EGfg 1 specified in Section 13-603, from the date of refund to 2 the date of repayment. Nothing herein may be construed 3 to allow an additional optional contribution to be made 4 on the account of a deceased employee. 5 (c) Additional optional benefit shall accrue for all 6 periods of eligible service for which additional 7 contributions are paid in full. The additional benefit shall 8 consist of an additional 1% of average final salary for each 9 year of service for which optional contributions have been 10 paid, to be added to the employee's retirement annuity as 11 otherwise computed under this Article. The calculation of 12 these additional benefits shall be subject to the same terms 13 and conditions as are used in the calculation of the 14 retirement annuity under this Article. The additional 15 benefit shall be included in the calculation of the automatic 16 annual increase in annuity under Section 13-302(d), and in 17 the calculation of surviving spouse's annuity where 18 applicable. However, no additional benefits will be granted 19 which produce a total annuity greater than the applicable 20 maximum established for that type of annuity in this Article. 21 The total additional optional benefit that may be received 22 under this Section is 15% of average final salary. 23 (d) Refunds of additional optional contributions shall 24 be made on the same basis and under the same conditions as 25 provided under Section 13-601. 26 (e) Optional contributions shall be accounted for in a 27 separate Optional Contribution Reserve. 28 (f) The tax levy computed under Section 13-503 shall be 29 based on employee contributions including the amount of 30 optional additional employee contributions. 31 (g) Service eligible under this Section may include only 32 service as an employee as defined in Section 13-204, and 33 subject to Section 13-401 and 13-402. No service granted 34 under Section 13-801 or 13-802 shall be eligible for optional -17- LRB9002859EGfg 1 service credit. No optional service credit may be 2 established for any military service, or for any service 3 under any other Article of this Code. Optional service 4 credit may be established for any period of disability paid 5 from this Fund, if the employee makes additional optional 6 contributions for such period of disability. 7 (h) This plan of optional benefits and contributions 8 shall not apply to service prior to withdrawal rendered by 9 any former employee who re-enters service unless such 10 employee renders not less than 36 consecutive months of 11 additional service after the date of re-entry. 12 (i) The effective date of this optional plan of 13 additional benefits and contributions shall be the date upon 14 which approval was received from the Internal Revenue 15 Service, July 31, 1987. 16 (j) This plan of additional benefits and contributions 17 shall expire December 31, 2002July 1, 1997. No additional 18 contributions may be made after that date, and no additional 19 benefits will accrue after that date. 20 (k) The maximum optional benefits for current and prior 21 service for which an employee can make contributions in a 22 single year shall be limited to 15 years of service in 1997 23 and before; 9 years of service in 1998; 6 years of service in 24 1999; and 3 years of service in 2000, 2001, and 2002. No 25 person may establish additional optional benefits under this 26 Section for more than 15 years of service. 27 (Source: P.A. 87-794; 87-1265.) 28 (40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305) 29 Sec. 13-305. Surviving spouse's annuity; eligibility. A 30 surviving spouse who was married to an employee on the date 31 of thesuchemployee's death while in service, or was married 32 to an employee on the date of withdrawal from service and 33 remained married to thatsuchemployee until the employee's -18- LRB9002859EGfg 1 death, shall be entitled to a surviving spouse's annuity 2 payable for life. However, the annuity shall not be payable 3 to; provided, however, thatthe surviving spouse of (1) an 4 employee who withdraws from service before age 55 with less 5 thanshall not be entitled to an annuity unless the deceased6employee had at least10 years of service, or less than 5 7 years of service if thefor the surviving spouse of a former8 employeewhohad been receiving a retirement annuity pursuant 9 to Section 13-301(d), or (2) an employee not described in 10 item (1) who first enters service on or after the effective 11 date of this amendatory Act of 1997 and who has been employed 12 as an employee for (i) less than 36 months from the date of 13 the employee's original entry into service or (ii) less than 14 12 months from the employee's date of latest re-entry into 15 service; except as otherwise provided in Section 13-306(a) 16 for an employee whose death arises out of or in the course of 17 the employee's service to the employer. 18 A dissolution of marriage after retirement shall not 19 divest the employee's spouse of the entitlement to a 20 surviving spouse's annuity upon the subsequent death of the 21 employee, provided that the surviving spouse and the deceased 22 employee had been married to each other for a period of not 23 less than 10 continuous years on the date of retirement. 24 (Source: P.A. 87-794.) 25 (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306) 26 Sec. 13-306. Computation of surviving spouse's annuity. 27 (a) Computation of the annuity. The surviving spouse's 28 annuity shall be equal to 60% of the retirement annuity 29 earned and accrued to the credit of the deceased employee, 30 whether death occurs while in service or after withdrawal, 31 plus 1% for each year of total service of the employee to a 32 maximum of 85%; provided, however, that if the employee's 33 death arises out of and in the course of the employee's -19- LRB9002859EGfg 1 service to the employer and is compensable under either the 2 Illinois Workers' Compensation Act or Illinois Workers' 3 Occupational Diseases Act, the surviving spouse's annuity is 4 payable regardless of the employee's length of service and 5 shall be not less than 50% of the employee's salary at the 6 date of death. 7 For any death in service the early retirement discount 8 required under Section 13-302(b) shall not be applied in 9 computing the retirement annuity upon which is based the 10 surviving spouse's annuity. 11 (b) Reciprocal service. For any employee or annuitant 12 who retires on or after July 1, 1985 and whose death occurs 13 after January 1, 1991, having at least 15 years of service 14 with the employer under this Article, and who was eligible at 15 the time of death or elected at the time of retirement to 16 have his or her retirement annuity calculated as provided in 17 Section 20-131 of this Code, the surviving spouse benefit 18 shall be calculated as of the date of the employee's death as 19 indicated in subsection (a) as a percentage of the employee's 20 total benefit as if all service had been with the employer. 21 That benefit shall then be reduced by the amounts payable by 22 each of the reciprocal funds as of the date of death so that 23 the total surviving spouse benefit at that date will be equal 24 to the benefit which would have been payable had all service 25 been with the employer under this Article. 26 (c) Discount for age differential. The annuity for a 27 surviving spouse shall be discounted by 0.25% for each full 28 month that the spouse is younger than the employee as of the 29 date of withdrawal from service or death in service to a 30 maximum discount of 60% of the surviving spouse annuity as 31 calculated under subsections (a), (b), and (e) of this 32 SectionSections 13-306(a) and 13-306(b) of this Act. The 33 discount shall be reduced by 10% for each full year the 34 marriage has been in continuous effect as of the date of -20- LRB9002859EGfg 1 withdrawal or death in service. There shall be no discount 2 if the marriage has been in continuous effect for 10tenfull 3 years or more at the time of withdrawal or death in service. 4 (d) Annual increase. On the first day of each calendar 5 month in which there occurs an anniversary of the employee's 6 date of retirement or date of death, whichever occurred 7 first, the surviving spouse's annuity, other than a term 8 annuity under Section 13-307, shall be increased by an amount 9 equal to 3% of the amount of the annuity. Beginning January 10 1, 1993, all annual increases payable under this subsection 11 (or any predecessor provision of this Article) shall be 12 calculated at the rate of 3% of the monthly annuity payable 13 at the time of the increase, including any increases 14 previously granted under this Articlesubsection. 15 Beginning January 1, 1993, surviving spouse annuitants 16 whose deceased spouse died, retired or withdrew from service 17 before August 23, 1989 with at least 10 years of service 18 under this Article shall be eligible for the annual increases 19 provided under this subsection. 20 (e) Minimum surviving spouse's annuity. Beginning 21 January 1, 1993, the minimum monthly surviving spouse's 22 annuity shall be $500 for any annuitant whose deceased spouse 23 had at least 10 years of service under this Article, other 24 than a surviving spouse who is a term annuitant or whose 25 deceased spouse began receiving a retirement annuity under 26 this Article before attainment of age 60. Any such surviving 27 spouse annuitant who is receiving a monthly annuity of less 28 than $500 shall have the annuity increased to $500 on that 29 date. 30 Beginning January 1, 1993, the minimum monthly surviving 31 spouse's annuity shall be $250 for any annuitant (other than 32 a term or reciprocal annuitant or an annuitant survivor under 33 subsection (d) of Section 13-301) whose deceased spouse had 34 less than 10 years of service under this Article, and for any -21- LRB9002859EGfg 1 annuitant (other than a term annuitant) whose deceased spouse 2 had at least 10 years of service under this Article and began 3 receiving a retirement annuity under this Article before 4 attainment of age 60. Any such surviving spouse annuitant 5 who is receiving a monthly annuity of less than $250 shall 6 have the annuity increased to $250 on that date. 7 The minimum annuity provided under this subsection (e) 8 shall be subject to the age discount provided under 9 subsection (c) of this Section. 10 (Source: P.A. 87-794; 87-1265.) 11 (40 ILCS 5/13-308) (from Ch. 108 1/2, par. 13-308) 12 Sec. 13-308. Child's annuity. 13 (a) Eligibility. A child's annuity shall be provided 14 for each unmarried childof a deceased employeeunder the age 15 of 18 years whose employee parent dies while in service, or 16 whose deceased parent is an annuitant or former employee with 17 at least 10 years of creditable service who did not take a 18 refund of employee contributions. 19 For purposes of this Section, "employee" includes a 20 former employee, and "child" means the issue of an employee, 21 or a child adopted by an employee if the proceedings for 22 adoption were instituted at least one year prior to the 23 employee's death. 24 Payments shall cease when a child attains the age of 18 25 years or marries, whichever first occurs. The annuity shall 26 not be payable unless the employee has been employed as an 27 employee foremployee's length of service isat least 36 28 months2 yearsfrom the date of the employee's original entry 29 into service (at least 24 months in the case of an employee 30 who first entered service before the effective date of this 31 amendatory Act of 1997) and at least 12 months1 yearfrom 32 the date of the employee's latest re-entry into service; 33 provided, however, that if death arises out of and in the -22- LRB9002859EGfg 1 course of service to the employer and is compensable under 2 either the Illinois Workers' Compensation Act or Illinois 3 Workers' Occupational Diseases Act, the annuity is payable 4 regardless of the employee's length of service. 5 (b) Amount. A child's annuity shall be $250 per month 6 for each child as provided in this Section if a parent of the 7 childduring such period as the surviving spouse of the8deceased employee parentis living, and $350 per month for 9 each child when neither parent is alive. Any child's annuity 10 which commenced prior to the effective date of this 11 amendatory Act of 1991 shall be increased upon the effective 12 date to the amount set forth herein. 13 (c) Payment. A child's annuity shall be paid to the 14 child's parent or other person who shall be providing for the 15 child without requiring formal letters of guardianship, 16 unless another person shall be appointed by a court of law as 17 guardian. 18 (Source: P.A. 87-794.) 19 (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309) 20 Sec. 13-309. Duty disability benefit. 21 (a) Any employee who becomesbecomingdisabledprior to22attainment of age 70, which disability is the result of an 23 injury or illness compensable under the Illinois Workers' 24 Compensation Act or the Illinois Workers' Occupational 25 Diseases Act, is entitled to a duty disability benefit during 26 the period of disability for which the employee does not 27 receive any part of salary, or any part of a retirement 28 annuity under this Article; except that in the case of an 29 employee who first enters service on or after the effective 30 date of this amendatory Act of 1997, a duty disability 31 benefit is not payable for the first 3 days of disability 32 that would otherwise be payable under this Section if the 33 disability does not continue for at least 11 additional days. -23- LRB9002859EGfg 1 This benefit shall be 75% of salary at the date disability 2 begins. However, if the disability in any measure resulted 3 from any physical defect or disease which existed at the time 4 such injury was sustained or such illness commenced, the duty 5 disability benefit shall be 50% of salary. 6The employee shall also receive a child's disability7benefit during such period of $10 per month for each8unmarried natural or adopted child of the employee less than9the age of 18 years.10 The first payment shall be made not later than one month 11 after the benefit is granted, and subsequent payments shall 12 be made at least monthly. The Board shall by rule prescribe 13 for the payment of such benefits on the basis of the amount 14 of salary lost during the period of disability. 15 (b) The benefit shall be allowed only if the following 16 requirements are met by the employee: 17 (1) Application is made to the Board within 90 days 18 from the date disability begins; 19 (2) A medical report is submitted by at least one 20 licensed and practicing physician as part of the 21 employee's application; and 22 (3) The employee is examined by at least one 23 licensed and practicing physician appointed by the Board 24 and found to be in a disabled physical condition, and 25 shall be re-examined at least annually thereafter during 26 the continuance of disability. The employee need not be 27 re-examined by a licensed and practicing physician if the 28 attorney for the district certifies in writing that the 29 employee is entitled to receive compensation under the 30 Workers' Compensation Act or the Workers' Occupational 31 Diseases Act. 32 (c) The benefit shall terminate when: 33 (1) The employee returns to work or receives a 34 retirement annuity paid wholly or in part under this -24- LRB9002859EGfg 1 Article; 2 (2) The disability ceases; 3 (3) The employee attains age 65, but if the 4 employee becomes disabled at age 6061or later, benefits 5 may be extended for a period of no moredisability shall6terminate no earlierthan 54years after disablementor7at age 70, whichever occurs first; except that child8benefit payments shall be made until the child's9marriage, death or attainment of age 18, whichever first10occurs; 11 (4) The employee refuses to submit to reasonable 12 examinations by physicians or other health professionals 13 appointed by the Board; or 14 (5) The employee willfully and continuously refuses 15 to accept medical treatment to enable the employee to 16 return to work. However this provision does not apply to 17 an employee who relies in good faith on treatment by 18 prayer through spiritual means alone in accordance with 19 the tenets and practice of a recognized church or 20 religious denomination, by a duly accredited practitioner 21 thereof. In the case of a duty disability recipient who 22 returns to work, the employee must make application to 23 the Retirement Board within 2 years from the date the 24 employee last received duty disability benefits in order 25 to become again entitled to duty disability benefits 26 based on the injury for which a duty disability benefit 27 was theretofore paid. 28 (Source: P.A. 87-794.) 29 (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310) 30 Sec. 13-310. Ordinary disability benefit. 31 (a) Any employeeunder age 70who becomes disabled as 32 the result of any cause other than injury or illness incurred 33 in the performance of duty for the employer or any other -25- LRB9002859EGfg 1 employer, or while engaged in self-employment activities, 2 shall be entitled to an ordinary disability benefit. The 3 eligible period for this benefit shall be 25% of the 4 employee's total actual service prior to the date of 5 disability with a cumulative maximum period of 5 yearsfor6employees becoming disabled prior to reaching age 61, and 47years for employees who become disabled at age 61 or later,8but in no event shall the benefit be payable after an9employee attains the age of 70. 10 (b) The benefit shall be allowed only if the employee 11 files an application in writing with the Board, and a medical 12 report is submitted by at least one licensed and practicing 13 physician as part of the employee's application. 14 The benefit is not payable for any disability which 15 begins during any period of unpaid leave of absence. No 16 benefit shall be allowed for any period of disability prior 17 to 30 days before application is made, unless the Board finds 18 good cause for the delay in filing the application. The 19 benefit shall not be paid during any period for which the 20 employee receives or is entitled to receive any part of 21 salary. 22 The benefit is not payable for any disability which 23 begins during any period of absence from duty other than 24 allowable vacation time in any calendar year. An employee 25 whose disability begins during any such ineligible period of 26 absence from service may not receive benefits until the 27 employee recovers from the disability and is in service for 28 at least 15 consecutive working days after such recovery. 29 In the case of an employee who first enters service on or 30 after the effective date of this amendatory Act of 1997, an 31 ordinary disability benefit is not payable for the first 3 32 days of disability that would otherwise be payable under this 33 Section if the disability does not continue for at least 11 34 additional days. -26- LRB9002859EGfg 1 (c) The benefit shall be 50% of the employee's salary at 2 the date of disability, and shall terminate when the earliest 3 of the following occurs: 4 (1) The employee returns to work or receives a 5 retirement annuity paid wholly or in part under this 6 Article; 7 (2) The disability ceases; 8 (3) (Blank)The employee attains age 65 but if the9employee becomes disabled at age 61 or older, the10disability shall terminate no earlier than 4 years after11disablement or at age 70, whichever occurs first; 12 (4) The employee refuses to submit to a reasonable 13 physical examination within 30 days of application by a 14 physician appointed by the Board or in the case of 15 chronic alcoholism, the employee refuses to join a 16 rehabilitation program licensed by the Department of 17 Public Health of the State of Illinois, and certified by 18 the Joint Commission on the Accreditation of Hospitals; 19 or 20 (5) The eligible period for this benefit has been 21 exhausted. 22 The first payment of the benefit shall be made not later 23 than one month after the same has been granted, and 24 subsequent payments shall be made at intervals of not more 25 than 30 days. 26 (Source: P.A. 87-794.) 27 (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314) 28 Sec. 13-314. Alternative provisions for Water 29 Reclamation District commissioners. 30 (a) Transfer of credits. Any Water Reclamation District 31 commissioner elected by vote of the people and who has 32 elected to participate in this Fund may transfer to this Fund 33 credits and creditable service accumulated under any other -27- LRB9002859EGfg 1 pension fund or retirement system established under Articles 2 2 through 18 of this Code, upon payment to the Fund of (1) 3 the amount by which the employer and employee contributions 4 that would have been required if he had participated in this 5 Fund during the period for which credit is being transferred, 6 plus interest, exceeds the amounts actually transferred from 7 such other fund or system to this Fund, plus (2) interest 8 thereon at 6% per year compounded annually from the date of 9 transfer to the date of payment. 10 (b) Alternative annuity. Any participant commissioner 11 may elect to establish alternative credits for an alternative 12 annuity by electing in writing to make additional optional 13 contributions in accordance with this Section and procedures 14 established by the Board. Such commissioner may discontinue 15 making the additional optional contributions by notifying the 16 fund in writing in accordance with this Section and 17 procedures established by the Board. 18 Additional optional contributions for the alternative 19 annuity shall be as follows: 20 (1) For service after the option is elected, an 21 additional contribution of 3% of salary shall be 22 contributed to the Fund on the same basis and under the 23 same conditions as contributions required under Section 24 13-502. 25 (2) For service before the option is elected, the 26 additional contribution shall be 3% of the salary for the 27 applicable period of service, plus interest at the annual 28 rate from time to time as determined by the Board, 29 compounded annually from the date of service to the date 30 of payment. All payments for past service must be paid 31 in full before credit is given. No additional optional 32 contributions may be made for any period of service for 33 which credit has been previously forfeited by acceptance 34 of a refund, unless the refund is repaid in full with -28- LRB9002859EGfg 1 interest at the rate specified in Section 13-603, from 2 the date of refund to the date of repayment. 3 In lieu of the retirement annuity otherwise payable under 4 this Article, any commissioner who has elected to participate 5 in the Fund and make additional optional contributions in 6 accordance with this Section, has attained age 55, and has at 7 least 6 years of service credit, may elect to have the 8 retirement annuity computed as follows: 3% of the 9 participant's average final salaryat the time of termination10of servicefor each of the first 8 years of service credit, 11 plus 4% of such salary for each of the next 4 years of 12 service credit, plus 5% of such salary for each year of 13 service credit in excess of 12 years, subject to a maximum of 14 80% of such salary. To the extent such commissioner has made 15 additional optional contributions with respect to only a 16 portion of years of service credit, the retirement annuity 17 will first be determined in accordance with this Section to 18 the extent such additional optional contributions were made, 19 and then in accordance with the remaining Sections of this 20 Article to the extent of years of service credit with respect 21 to which additional optional contributions were not made. 22 The change in minimum retirement age (from 60 to 55) made by 23 this amendatory Act of 1993 applies to persons who begin 24 receiving a retirement annuity under this Section on or after 25 the effective date of this amendatory Act, without regard to 26 whether they are in service on or after that date. 27 (c) Disability benefits. In lieu of the disability 28 benefits otherwise payable under this Article, any 29 commissioner who (1) has elected to participate in the Fund, 30 and (2) has become permanently disabled and as a consequence 31 is unable to perform the duties of office, and (3) was making 32 optional contributions in accordance with this Section at the 33 time the disability was incurred, may elect to receive a 34 disability annuity calculated in accordance with the formula -29- LRB9002859EGfg 1 in subsection (b). For the purposes of this subsection, such 2 commissioner shall be considered permanently disabled only 3 if: (i) disability occurs while in service as a commissioner 4 and is of such a nature as to prevent the reasonable 5 performance of the duties of office at the time; and (ii) the 6 Board has received a written certification by at least 2 7 licensed physicians appointed by it stating that such 8 commissioner is disabled and that the disability is likely to 9 be permanent. 10 (d) Alternative survivor's benefits. In lieu of the 11 survivor's benefits otherwise payable under this Article, the 12 spouse or eligible child of any deceased commissioner who (1) 13 had elected to participate in the Fund, and (2) was either 14 making additional optional contributions on the date of 15 death, or was receiving an annuity calculated under this 16 Section at the time of death, may elect to receive an annuity 17 beginning on the date of the commissioner's death, provided 18 that the spouse and commissioner must have been married on 19 the date of the last termination of a service as commissioner 20 and for a continuous period of at least one year immediately 21 preceding death. 22 The annuity shall be payable beginning on the date of the 23 commissioner's death if the spouse is then age 50 or over, or 24 beginning at age 50 if the age of the spouse is less than 50 25 years. If a minor unmarried child or children of the 26 commissioner, under age 18, also survive, and the child or 27 children are under the care of the eligible spouse, the 28 annuity shall begin as of the date of death of the 29 commissioner without regard to the spouse's age. 30 The annuity to a spouse shall be 66 2/3% of the amount of 31 retirement annuity earned by the commissioner on the date of 32 death, subject to a minimum payment of 10% of salary, 33 provided that if an eligible spouse, regardless of age, has 34 in his or her care at the date of death of the commissioner -30- LRB9002859EGfg 1 any unmarried child or children of the commissioner under age 2 18, the minimum annuity shall be 30% of the commissioner's 3 salary, plus 10% of salary on account of each minor child of 4 the commissioner, subject to a combined total payment on 5 account of a spouse and minor children not to exceed 50% of 6 the deceased commissioner's salary. In the event there shall 7 be no spouse of the commissioner surviving, or should a 8 spouse die while eligible minor children still survive the 9 commissioner, each such child shall be entitled to an annuity 10 equal to 20% of salary of the commissioner subject to a 11 combined total payment on account of all such children not to 12 exceed 50% of salary of the commissioner. The salary to be 13 used in the calculation of these benefits shall be the same 14 as that prescribed for determining a retirement annuity as 15 provided in subsection (b) of this Section. 16 Upon the death of a commissioner occurring after 17 termination of a service or while in receipt of a retirement 18 annuity, the combined total payment to a spouse and minor 19 children, or to minor children alone if no eligible spouse 20 survives, shall be limited to 75% of the amount of retirement 21 annuity earned by the commissioner. 22 Adopted children shall have status as natural children of 23 the commissioner only if the proceedings for adoption were 24 commenced at least one year prior to the date of the 25 commissioner's death. 26 Marriage of a child or attainment of age 18, whichever 27 first occurs, shall render the child ineligible for further 28 consideration in the payment of annuity to a spouse or in the 29 increase in the amount thereof. Upon attainment of 30 ineligibility of the youngest minor child of the 31 commissioner, the annuity shall immediately revert to the 32 amount payable upon death of a commissioner leaving no minor 33 children surviving. If the spouse is under age 50 at such 34 time, the annuity as revised shall be deferred until such age -31- LRB9002859EGfg 1 is attained. 2 (e) Refunds. Refunds of additional optional 3 contributions shall be made on the same basis and under the 4 same conditions as provided under Section 13-601. Interest 5 shall be credited on the same basis and under the same 6 conditions as for other contributions. 7 Optional contributions shall be accounted for in a 8 separate Commission's Optional Contribution Reserve. 9 Optional contributions under this Section shall be included 10 in the amount of employee contributions used to compute the 11 tax levy under Section 13-503. 12 (f) Effective date. The effective date of this plan of 13 optional alternative benefits and contributions shall be the 14 date upon which approval was received from the U.S. Internal 15 Revenue Service. The plan of optional alternative benefits 16 and contributions shall not be available to any former 17 employee receiving an annuity from the Fund on the effective 18 date, unless said former employee re-enters service and 19 renders at least 3 years of additional service after the date 20 of re-entry as a commissioner. 21 (Source: P.A. 87-794; 87-1265.) 22 (40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401) 23 Sec. 13-401. Term of service. 24 (a) In computing the term of service, the following 25 periods of time shall be counted as periods of service for 26 annuity purposes only: 27 (1) the time during which the employee performs 28 services required by the Employer. 29 (2) approved vacations or leaves of absence with 30 whole or part pay. 31 (3) any period for which the employee receives a 32 disability benefit payable under this Article. 33 (4) leaves of absence for military service as -32- LRB9002859EGfg 1 provided in Section 13-403. 2 (b) In computing the term of service for the ordinary 3 disability benefit, the following periods of time shall be 4 counted as periods of service: 5 (1) the time during which the employee performs 6 services required by the Employer. 7 (2) approved vacations or leaves of absence with 8 whole or part pay. 9 (3) any period for which the employee receives a 10 duty disability benefit under this Article. 11 (c) Any employee who first enters service before the 12 effective date of this amendatory Act of 1997 may, during any 13 period of approved leave of absence without pay, continue to 14 make contributions for the retirement and surviving spouse's 15 annuities for a total period not to exceed one year during 16 the employee's entire aggregate service with the Employer. 17 Upon making these contributions, the employee shall receive 18 credit in terms of length of service for the retirement and 19 surviving spouse's annuities. Concurrent Employer's 20 contributions shall be provided by the District. 21 (d) An employee may establish credit for periods of 22 approved leave of absence without pay, not to exceed a total 23 of one year during the employee's aggregate service with the 24 employer. To establish this credit, the employee must either 25 continue to remain on approved leave of absence, return to 26 service with the employer, or in the case of an employee who 27 first enters service on or after the effective date of this 28 amendatory Act of 1997, return to service with the employer 29 for at least one calendar year. The employee must pay to the 30 Fund the corresponding employee contributions, plus interest 31 at the annual rate from time to time determined by the Board, 32 compounded annually from the date of service to the date of 33 payment. The corresponding employer contributions shall be 34 provided by the District. Upon making the required -33- LRB9002859EGfg 1 contributions, the employee shall receive credit in terms of 2 length of service for the retirement and surviving spouse's 3 annuity in proportion to the number of pay periods or portion 4 thereof for which contributions were made relative to 26 pay 5 periods. 6 (e) Overtime or extra service shall not be included in 7 computing any service. Not more than one1year of service 8 credit shall be allowed for service rendered during any 9 calendar year. 10 (Source: P.A. 87-794.) 11 (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402) 12 Sec. 13-402. Length of service. For the purpose of 13 computing the length of service for the retirement annuity, 14 surviving spouse's annuity and child's annuity, service of 15 120 days in any one calendar year shall constitute one year 16 of service and service for any fractional part thereof shall 17 constitute an equal fractional part of one year of service 18 unless specifically provided otherwise. For all other 19 purposes under this Article, including but not limited to the 20 optional plansplanof additional benefits and contributions 21 provided under SectionsSection13-304 and 13-314 of this 22 Article, 26 pay periods of service during any 12 consecutive 23 monthsa calendar yearshall constitute a year of service, 24 and service rendered for 50% or more of a single pay period 25 shall constitute service for the full pay period. Service of 26 less than 50% of a single pay period shall not be counted. 27 (Source: P.A. 87-794.) 28 Section 90. In accordance with subdivision (a)(1) of 29 Section 8 of the State Mandates Act, the General Assembly 30 finds that the State is excluded from reimbursement liability 31 for this amendatory Act of 1997 because it accommodates a 32 request from the affected unit of local government. -34- LRB9002859EGfg 1 Section 99. Effective date. This Act takes effect upon 2 becoming law. -35- LRB9002859EGfg 1 INDEX 2 Statutes amended in order of appearance 3 40 ILCS 5/1-113 from Ch. 108 1/2, par. 1-113 4 40 ILCS 5/13-204 from Ch. 108 1/2, par. 13-204 5 40 ILCS 5/13-207 from Ch. 108 1/2, par. 13-207 6 40 ILCS 5/13-208 from Ch. 108 1/2, par. 13-208 7 40 ILCS 5/13-301 from Ch. 108 1/2, par. 13-301 8 40 ILCS 5/13-302 from Ch. 108 1/2, par. 13-302 9 40 ILCS 5/13-304 from Ch. 108 1/2, par. 13-304 10 40 ILCS 5/13-305 from Ch. 108 1/2, par. 13-305 11 40 ILCS 5/13-306 from Ch. 108 1/2, par. 13-306 12 40 ILCS 5/13-308 from Ch. 108 1/2, par. 13-308 13 40 ILCS 5/13-309 from Ch. 108 1/2, par. 13-309 14 40 ILCS 5/13-310 from Ch. 108 1/2, par. 13-310 15 40 ILCS 5/13-314 from Ch. 108 1/2, par. 13-314 16 40 ILCS 5/13-401 from Ch. 108 1/2, par. 13-401 17 40 ILCS 5/13-402 from Ch. 108 1/2, par. 13-402